Lease acquisition cost reduced for resort projects

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A 46.2 acre island in the Noonu Atoll, (Photo/Vladi Private Islands)

Ministry of Tourism on Monday announced a reduction in the lease acquisition costs for resort projects in the Maldives.

The Ministry noted that under the Cross-Subsidy Regulation, the basis for the calculation of lease acquisition costs for islands, lagoons, and plots of land has been revised.

An announcement by the Ministry further noted that this is the basis for the calculation of the minimum lease acquisition costs for leases in the respective atolls. It highlighted that the final lease acquisition costs will be determined through negotiations between the proponent and the Government, subject to adherence to the minimum figure calculated on this basis.

With the revisions, the base rate for Haa Alif Atoll, Haa Dhaal Atoll, Gnaviyani Atoll, and Seenu Atoll is USD 500,000. The base rate for these atolls stood at USD 1 million previously. The rate per hectare is now USD 50,000 with a size premium of USD 500,000 for islands between 20 hectares and 40 hectares, and USD 2 million for islands over 40 hectares. Size premiums for larger islands were previously at USD 3 million.

The base rate for Shaviyani Atoll, Tha Atoll, and Laamu Atoll is now USD 1 million, compared to the previous base rate of USD 1.5 million. The rate per hectare is USD 100,000 with a size premium of USD 500,000 for islands between 20 hectares and 40 hectares, and USD 2 million for islands over 40 hectares.

The base rate for Noonu Atoll, Baa Atoll, and Raa Atoll is now USD 2 million, compared to the previous base rate of USD 3 million. The rate per hectare is USD 300,000 with a size premium of USD 1 million for islands between 20 hectares and 40 hectares, and USD 3 million for islands over 40 hectares.

Kaafu Atoll is the most expensive atoll, with the base rate now being USD 3 million, compared to the previous base rate of USD 5 million. The rate per hectare is USD 600,000 with a size premium of USD 1 million for islands between 20 hectares and 40 hectares, and USD 3 million for islands over 40 hectares.

The base rate for Alif Alif Atoll, Alif Dhaalu Atoll, and Vaavu Atoll is now USD 2 million, compared to the previous base rate of USD 3 million. The rate per hectare is USD 450,000 with a size premium of USD 1 million for islands between 20 hectares and 40 hectares, and USD 3 million for islands over 40 hectares.

The base rate for Meemu Atoll, Faafu Atoll, and Dhaalu Atoll is now USD 1.5 million. The rate per hectare is USD 200,000 with a size premium of USD 1 million for islands between 20 hectares and 40 hectares, and USD 3 million for islands over 40 hectares.

The base rate for Gaafu Alif Atoll, and Gaafu Dhaalu Atoll is now USD 750,000 million. The rate per hectare is USD 75,000 with a size premium of USD 500,000 for islands between 20 hectares and 40 hectares, and USD 3 million for islands over 40 hectares.

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